IDEAS home Printed from https://ideas.repec.org/a/kap/copoec/v3y1992i2p177-196.html
   My bibliography  Save this article

The taming of Leviathan: Competition among governments

Author

Listed:
  • Stefan Sinn

Abstract

This paper assesses the consequences of a high degree of international capital mobility for the behavior of governments. It is argued that countries can be seen as clubs where the government as club management acts as an entrepreneur attempting to attract internationally mobile resources. Within this stylized model it is shown that competition induces the government of a small democratic country to implement policy reforms that increase the welfare of domestic residents if it wants to be reelected. This result suggests that international openness may be a substitute for more overt attempts to contain a government's Leviathan tendencies such as constitutional amendments. Finally, the case against competition among governments is analyzed from the perspective of the club model developed in the paper. Copyright George Mason University 1992

Suggested Citation

  • Stefan Sinn, 1992. "The taming of Leviathan: Competition among governments," Constitutional Political Economy, Springer, vol. 3(2), pages 177-196, March.
  • Handle: RePEc:kap:copoec:v:3:y:1992:i:2:p:177-196 DOI: 10.1007/BF02393119
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1007/BF02393119
    Download Restriction: Access to full text is restricted to subscribers.

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Sinn, Hans-Werner, 1990. "Tax harmonization and tax competition in Europe," European Economic Review, Elsevier, vol. 34(2-3), pages 489-504, May.
    2. Roland VAUBEL, 1985. "International Collusion or Competition for Macroeconomic Policy Coordination? A Restatement," Discussion Papers (REL - Recherches Economiques de Louvain) 1985031, Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES).
    3. Charles M. Tiebout, 1956. "A Pure Theory of Local Expenditures," Journal of Political Economy, University of Chicago Press, vol. 64, pages 416-416.
    4. Demsetz, Harold, 1969. "Information and Efficiency: Another Viewpoint," Journal of Law and Economics, University of Chicago Press, vol. 12(1), pages 1-22, April.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Wagener, Andreas, 2001. "Double Bertrand tax competition: a fiscal game with governments acting as middlemen," Regional Science and Urban Economics, Elsevier, vol. 31(2-3), pages 273-297, April.
    2. Boss, Alfred, 2003. "Steuerharmonisierung oder Steuerwettbewerb?," Kiel Working Papers 1178, Kiel Institute for the World Economy (IfW).
    3. Schweickert, Rainer & Wiebelt, Manfred, 1996. "Finanzpolitik im Aufholprozeß: Lehren aus Europa, Lateinamerika und Asien," Open Access Publications from Kiel Institute for the World Economy 1689, Kiel Institute for the World Economy (IfW).
    4. Rauscher, Michael, 1996. "Interjurisdictional competition and the efficiency of the public sector: The triumph of the market over the state?," Kiel Working Papers 732, Kiel Institute for the World Economy (IfW).
    5. Justus Haucap, 2012. "Steuern, Wettbewerb und Wettbewerbsneutralität," Perspektiven der Wirtschaftspolitik, Verein für Socialpolitik, vol. 13(1-2), pages 103-115, February.
    6. Pierre Salmon, 2006. "Horizontal Competition Among Governments," Chapters,in: Handbook of Fiscal Federalism, chapter 2 Edward Elgar Publishing.
    7. Berthold Norbert & Neumann Michael, 2004. "Ballungsprozesse im Standortwettbewerb der deutschen Bundesländer," ORDO. Jahrbuch für die Ordnung von Wirtschaft und Gesellschaft, De Gruyter, vol. 55(1), pages 169-190, January.
    8. Pierre Salmon, 2013. "Horizontal competition in multilevel governmental settings," Working Papers hal-00830876, HAL.
    9. Scharpf, Fritz W., 2005. "Recht und Politik in der Reform des deutschen Föderalismus," MPIfG Working Paper 05/6, Max Planck Institute for the Study of Societies.
    10. Oates, Wallace E., 2001. "Fiscal competition and European Union: contrasting perspectives," Regional Science and Urban Economics, Elsevier, vol. 31(2-3), pages 133-145, April.
    11. Gerum Elmar & Mölls Sascha H., 2013. "Corporate Governance-Systeme und Unternehmensfinanzierung - Empirische Befunde für deutsche Großunternehmen / Corporate Governance-Systems and Corporate Financing – Empirical Evidence for large corpor," ORDO. Jahrbuch für die Ordnung von Wirtschaft und Gesellschaft, De Gruyter, vol. 64(1), pages 195-220, January.
    12. Wohlgemuth, Michael, 2007. "Learning through institutional competition," Freiburg Discussion Papers on Constitutional Economics 07/9, Walter Eucken Institut e.V..
    13. Apolte, Thomas, 2001. "How Tame Will Leviathan Become in Institutional Competition? Competition among Governments in the Provision of Public Goods," Public Choice, Springer, vol. 107(3-4), pages 359-381, June.
    14. Daumann Frank, 2000. "Nationale Krankenversicherungssysteme Europas im Systemwettbewerb / National Health Care Systems Exposed to Institutional Competition," Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), De Gruyter, vol. 220(5), pages 527-540, October.
    15. Ricardo Varsano & Sergio Guimarães Ferreira & José Roberto Afonso, 2015. "Fiscal Competition: a Bird's Eye View," Discussion Papers 0114, Instituto de Pesquisa Econômica Aplicada - IPEA.
    16. Lorz, Oliver, 1998. "Capital mobility, tax competition, and lobbying for redistributive capital taxation," European Journal of Political Economy, Elsevier, vol. 14(2), pages 265-279, May.
    17. Anthony Evans, 2014. "A subjectivist’s solution to the limits of public choice," The Review of Austrian Economics, Springer;Society for the Development of Austrian Economics, vol. 27(1), pages 23-44, March.
    18. Daniel Strecker, 1999. "Forschungs- und Technologiepolitik im Standortwettbewerb," Volkswirtschaftliche Diskussionsbeiträge 29, Universität Potsdam, Wirtschafts- und Sozialwissenschaftliche Fakultät.
    19. Schweickert, Rainer, 1994. "Regional integration: A worthwhile strategy for catching up?," Kiel Working Papers 623, Kiel Institute for the World Economy (IfW).
    20. Haucap, Justus, 2010. "Steuerharmonisierung oder Steuerwettbewerb in Europa?," DICE Ordnungspolitische Perspektiven 09, University of Düsseldorf, Düsseldorf Institute for Competition Economics (DICE).
    21. Klaus Heine, 2003. "Kompetitiver Föderalismus auch für das öffentliche Gut "Recht"?," Vierteljahrshefte zur Wirtschaftsforschung / Quarterly Journal of Economic Research, DIW Berlin, German Institute for Economic Research, vol. 72(3), pages 472-484.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:kap:copoec:v:3:y:1992:i:2:p:177-196. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Sonal Shukla) or (Rebekah McClure). General contact details of provider: http://www.springer.com .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.